NY State Senate Bill 2015-S3884A

Senate Bill S3884A

2015-2016 Legislative Session

Provides earned income tax credit to youth workers, increases standard deduction for individuals 18 to 24, and provides for deduction of student loan interest

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 20, 2016	print number 3884a
Jan 20, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Feb 20, 2015	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2015-S3884 - Details

See Assembly Version of this Bill:: A7891
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§606, 614 & 615, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A4875
2011-2012: A5399
2013-2014: S5393, A2617
2017-2018: S3596, A2108
2019-2020: S4891, A1055
2021-2022: S5289, A1080
2023-2024: S6774, A477

2015-S3884 - Summary

Provides an earned income tax credit to youth workers, increases the standard deduction for individuals eighteen to twenty-four years of age, provides for the deduction of student loan interest and provides for the expiration of such provisions.

2015-S3884 - Sponsor Memo

                                BILL NUMBER:S3884

TITLE OF BILL:

An act to amend the tax law, in relation to providing an earned income
tax credit to youth workers, increasing the standard deduction and
providing for the deduction of student loan interest; and providing
for the repeal of such provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:

To provide earned income tax credit to youth workers, increase the
standard deduction for individuals 18 to 24, and provide for the
deduction of student loan interest.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends Section 606 of the tax law by adding a new subsection
d-2 creating the earned income tax credit for youth workers. The
credit allowed is equal to that allowed to a taxpayer under section 32
of the internal revenue code This section sets the qualifications the
taxpayer must satisfy in order to be eligible for the credit.

Section 2 amends subsection a of section 614 of the tax law by
providing a standard deduction of ten thousand dollars by a New York
state resident who is between the ages of eighteen and twenty-four and

setting other qualifications.

Section 3 adds a new subsection h to section 615 of the tax law by
providing a deduction for interest paid on qualified education loans.

Section 4 is the effective date.

JUSTIFICATION:

New York State tax law does not provide exemptions for young,
independent adults ages 17-24. This age group is often ignored and
left out of exemptions, left with lower income deduction rates and not
provided the benefits on par with the Federal government on
student-loan deductions. Our youngest population of adults deserves
tax relief on the same level as the rest of our independent residents
throughout the state. New York is dealing with an exodus of younger
adults seeking greater economic opportunities in other states.
Because of the loss in population, it is in the best interest of the
state to try to assist these independent young workers and students
and encourage them to stay in the state to be contributing members to
New York State's improvement initiatives and economic growth.

PRIOR LEGISLATIVE HISTORY:

2013-14: S.5393A/A.2617A - Referred to Investigations and Gov't
Operations
2011-12: A.5399 - Referred to Ways and Means
2009-10: S.2720/A.11826 - Referred to Investigations and Gov't
Operations

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:


None.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018 and shall expire and be
deemed repealed December 31, 2023.

2015-S3884 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3884

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 20, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to providing an  earned  income
  tax  credit  to  youth  workers, increasing the standard deduction and
  providing for the deduction of student loan  interest;  and  providing
  for the repeal of such provisions upon expiration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (d-2) to read as follows:
  (D-2)  EARNED  INCOME  TAX  CREDIT  FOR  YOUTH WORKERS. (1) A TAXPAYER
DESCRIBED IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A  CREDIT
EQUAL  TO  THE  PRODUCT  OF  ONE  AND THREE-TENTHS AND THE AMOUNT OF THE
EARNED INCOME TAX CREDIT THAT WOULD HAVE BEEN ALLOWED  TO  THE  TAXPAYER
UNDER  SECTION  32  OF  THE  INTERNAL  REVENUE CODE, IF THE TAXPAYER HAD
ATTAINED THE MINIMUM AGE OF ELIGIBILITY FOR SUCH EARNED INCOME TAX CRED-
IT SET FORTH IN SECTION  32(C)(1)(A)(II)(II)  OF  THE  INTERNAL  REVENUE
CODE.
  (2)  TO  BE  ALLOWED  A  CREDIT UNDER THIS SUBSECTION, A TAXPAYER MUST
SATISFY ALL OF THE FOLLOWING QUALIFICATIONS:
  (A) THE TAXPAYER MUST BE A RESIDENT TAXPAYER WHO IS NOT CLAIMED  AS  A
DEPENDENT OF ANOTHER TAXPAYER.
  (B)  THE TAXPAYER MUST HAVE ATTAINED THE AGE OF SEVENTEEN AND MUST NOT
HAVE ATTAINED THE MINIMUM AGE AT WHICH A TAXPAYER IS QUALIFIED  FOR  THE
EARNED   INCOME  TAX  CREDIT  AS  SUCH  AGE  IS  SET  FORTH  IN  SECTION
32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.
  (C) THE TAXPAYER MUST NOT BE THE CUSTODIAL OR NON-CUSTODIAL PARENT  OF
A MINOR CHILD OR CHILDREN.
  (3) NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT THE QUALIFICA-
TIONS  OF A TAXPAYER WHO IS OTHERWISE ELIGIBLE FOR THE EARNED INCOME TAX

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09327-01-5

S. 3884                             2

CREDIT AND WHO IS ENROLLED IN A FULL-TIME OR PART-TIME ACADEMIC  PROGRAM
LEADING  TO  COMPLETION  OF  A  HIGH SCHOOL DIPLOMA, GENERAL EQUIVALENCY
DIPLOMA, POST-SECONDARY CERTIFICATE OR WORK READINESS CREDENTIAL,  ASSO-
CIATE DEGREE OR BACCALAUREATE DEGREE.
  (4)  REPORTS.  THE  COMMISSIONER  SHALL  PREPARE A PRELIMINARY WRITTEN
REPORT AFTER JULY THIRTY-FIRST AND A FINAL WRITTEN REPORT AFTER DECEMBER
THIRTY-FIRST OF EACH CALENDAR  YEAR,  WHICH  SHALL  CONTAIN  STATISTICAL
INFORMATION  REGARDING THE CREDITS GRANTED ON OR BEFORE SUCH DATES UNDER
THIS SUBSECTION DURING SUCH CALENDAR YEAR. COPIES OF THESE REPORTS SHALL
BE SUBMITTED BY SUCH COMMISSIONER TO THE GOVERNOR, THE TEMPORARY  PRESI-
DENT  OF  THE  SENATE,  THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE
SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE WITHIN SIXTY DAYS OF JULY THIRTY-FIRST  WITH  RESPECT  TO  THE
PRELIMINARY  REPORT, AND WITHIN FORTY-FIVE DAYS OF DECEMBER THIRTY-FIRST
WITH RESPECT TO THE FINAL REPORT.  SUCH REPORTS SHALL CONTAIN, BUT  NEED
NOT  BE LIMITED TO, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH
CREDITS ALLOWED.  SUCH INFORMATION SHALL INCLUDE THE NUMBER  OF  CREDITS
AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER
OF  CREDITS AND THE AVERAGE AMOUNTS OF SUCH CREDITS ALLOWED TO TAXPAYERS
IN EACH COUNTY.
  S 2. Subsection (a) of section 614 of the tax law, as amended by chap-
ter 170 of the laws of 1994, is amended to read as follows:
  (a) Unmarried individual. For taxable years beginning  after  nineteen
hundred  ninety-six, the New York standard deduction of a resident indi-
vidual who is not married nor the head of a household  nor  a  surviving
spouse nor an individual whose federal exemption amount is zero shall be
seven  thousand  five  hundred  dollars;  for taxable years beginning in
nineteen hundred ninety-six, such  standard  deduction  shall  be  seven
thousand  four  hundred dollars; for taxable years beginning in nineteen
hundred ninety-five, such standard deduction shall be six  thousand  six
hundred  dollars; and for taxable years beginning after nineteen hundred
eighty-nine and  before  nineteen  hundred  ninety-five,  such  standard
deduction  shall  be  six  thousand dollars. FOR TAXABLE YEARS BEGINNING
AFTER TWO THOUSAND FIFTEEN, THE NEW YORK STANDARD DEDUCTION OF  A  RESI-
DENT  INDIVIDUAL WHO IS BETWEEN THE AGES OF EIGHTEEN AND TWENTY-FOUR AND
WHO IS NOT MARRIED NOR THE HEAD OF A HOUSEHOLD NOR  A  SURVIVING  SPOUSE
NOR  AN  INDIVIDUAL  WHOSE FEDERAL EXEMPTION AMOUNT IS ZERO SHALL BE TEN
THOUSAND DOLLARS.
  S 3. Section 615 of the tax law is amended by adding a new  subsection
(h) to read as follows:
  (H)  FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOU-
SAND SIXTEEN, IN THE CASE OF  A  RESIDENT  INDIVIDUAL,  THERE  SHALL  BE
ALLOWED  AS  A  DEDUCTION  FOR  THE  TAXABLE YEAR AN AMOUNT EQUAL TO THE
INTEREST PAID BY THE TAXPAYER DURING THE TAXABLE YEAR ON  ANY  QUALIFIED
EDUCATION  LOAN  TO  THE  EXTENT  AND  AS PROVIDED IN SECTION 221 OF THE
INTERNAL REVENUE CODE.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018  and  shall  expire  and  be
deemed repealed December 31, 2023.

2015-S3884A (ACTIVE) - Details

See Assembly Version of this Bill:: A7891
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§606, 614 & 615, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A4875
2011-2012: A5399
2013-2014: S5393, A2617
2017-2018: S3596, A2108
2019-2020: S4891, A1055
2021-2022: S5289, A1080
2023-2024: S6774, A477

2015-S3884A (ACTIVE) - Summary

2015-S3884A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3884A

 TITLE OF BILL :  An act to amend the tax law, in relation to
providing an earned income tax credit to youth workers, increasing the
standard deduction and providing for the deduction of student loan
interest; and providing for the repeal of such provisions upon
expiration thereof

 PURPOSE OR GENERAL IDEA OF BILL :

To provide earned income tax credit to youth workers, increase the
standard deduction for individuals 18 to 24, and provide for the
deduction of student loan interest.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends Section 606 of the tax law by adding a new subsection
d-2 creating the earned income tax credit for youth workers. The
credit allowed is equal to that allowed to a taxpayer under section 32
of the internal revenue code. This section sets the qualifications the
taxpayer must satisfy in order to be eligible for the credit.

Section 2 amends subsection a of section 614 of the tax law by
providing a standard deduction of ten thousand dollars by a New York
state resident who is between the ages of eighteen and twenty-four and
setting other qualifications.

Section 3 adds a new subsection h to section 615 of the tax law by
providing a deduction for interest paid on qualified education loans.

Section 4 is the effective date.

 JUSTIFICATION :

New York State tax law does not provide exemptions for young,
independent adults ages 17-24. This age group is often ignored and
left out of exemptions, left with lower income deduction rates and not
provided the benefits on par with the Federal government on
student-loan deductions. Our youngest population of adults deserves
tax relief on the same level as the rest of our independent residents
throughout the state. New York is dealing with an exodus of younger
adults seeking greater economic opportunities in other states.
Because of the loss in population, it is in the best interest of the
state to try to assist these independent young workers and students
and encourage them to stay in the state to be contributing members to
New York State's improvement initiatives and economic growth.

 PRIOR LEGISLATIVE HISTORY :

2013-14: S.5393A/A.2617A - Referred to Investigations and Gov't
Operations
2011-12: A.5399 - Referred to Ways and Means
2009-10: S.2720/A.11826 - Referred to Investigations and Gov't
Operations

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2019 and shall expire and be
deemed repealed December 31, 2024.

2015-S3884A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3884--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 20, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the tax law, in relation to providing an earned income
  tax credit to youth workers, increasing  the  standard  deduction  and
  providing  for  the  deduction of student loan interest; and providing
  for the repeal of such provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (d-2) to read as follows:
  (D-2) EARNED INCOME TAX CREDIT  FOR  YOUTH  WORKERS.  (1)  A  TAXPAYER
DESCRIBED  IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A CREDIT
EQUAL TO THE PRODUCT OF ONE AND  THREE-TENTHS  AND  THE  AMOUNT  OF  THE
EARNED  INCOME  TAX  CREDIT THAT WOULD HAVE BEEN ALLOWED TO THE TAXPAYER
UNDER SECTION 32 OF THE INTERNAL  REVENUE  CODE,  IF  THE  TAXPAYER  HAD
ATTAINED THE MINIMUM AGE OF ELIGIBILITY FOR SUCH EARNED INCOME TAX CRED-
IT  SET  FORTH  IN  SECTION  32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE
CODE.
  (2) TO BE ALLOWED A CREDIT UNDER  THIS  SUBSECTION,  A  TAXPAYER  MUST
SATISFY ALL OF THE FOLLOWING QUALIFICATIONS:
  (A)  THE  TAXPAYER MUST BE A RESIDENT TAXPAYER WHO IS NOT CLAIMED AS A
DEPENDENT OF ANOTHER TAXPAYER.
  (B) THE TAXPAYER MUST HAVE ATTAINED THE AGE OF SEVENTEEN AND MUST  NOT
HAVE  ATTAINED  THE MINIMUM AGE AT WHICH A TAXPAYER IS QUALIFIED FOR THE
EARNED  INCOME  TAX  CREDIT  AS  SUCH  AGE  IS  SET  FORTH  IN   SECTION
32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09327-02-6

S. 3884--A                          2

  (C)  THE TAXPAYER MUST NOT BE THE CUSTODIAL OR NON-CUSTODIAL PARENT OF
A MINOR CHILD OR CHILDREN.
  (3) NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT THE QUALIFICA-
TIONS  OF A TAXPAYER WHO IS OTHERWISE ELIGIBLE FOR THE EARNED INCOME TAX
CREDIT AND WHO IS ENROLLED IN A FULL-TIME OR PART-TIME ACADEMIC  PROGRAM
LEADING  TO  COMPLETION  OF  A  HIGH SCHOOL DIPLOMA, GENERAL EQUIVALENCY
DIPLOMA, POST-SECONDARY CERTIFICATE OR WORK READINESS CREDENTIAL,  ASSO-
CIATE DEGREE OR BACCALAUREATE DEGREE.
  (4)  REPORTS.  THE  COMMISSIONER  SHALL  PREPARE A PRELIMINARY WRITTEN
REPORT AFTER JULY THIRTY-FIRST AND A FINAL WRITTEN REPORT AFTER DECEMBER
THIRTY-FIRST OF EACH CALENDAR  YEAR,  WHICH  SHALL  CONTAIN  STATISTICAL
INFORMATION  REGARDING THE CREDITS GRANTED ON OR BEFORE SUCH DATES UNDER
THIS SUBSECTION DURING SUCH CALENDAR YEAR. COPIES OF THESE REPORTS SHALL
BE SUBMITTED BY SUCH COMMISSIONER TO THE GOVERNOR, THE TEMPORARY  PRESI-
DENT  OF  THE  SENATE,  THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE
SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE WITHIN SIXTY DAYS OF JULY THIRTY-FIRST  WITH  RESPECT  TO  THE
PRELIMINARY  REPORT, AND WITHIN FORTY-FIVE DAYS OF DECEMBER THIRTY-FIRST
WITH RESPECT TO THE FINAL REPORT.  SUCH REPORTS SHALL CONTAIN, BUT  NEED
NOT  BE LIMITED TO, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH
CREDITS ALLOWED.  SUCH INFORMATION SHALL INCLUDE THE NUMBER  OF  CREDITS
AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER
OF  CREDITS AND THE AVERAGE AMOUNTS OF SUCH CREDITS ALLOWED TO TAXPAYERS
IN EACH COUNTY.
  S 2. Subsection (a) of section 614 of the tax law, as amended by chap-
ter 170 of the laws of 1994, is amended to read as follows:
  (a) Unmarried individual. For taxable years beginning  after  nineteen
hundred  ninety-six, the New York standard deduction of a resident indi-
vidual who is not married nor the head of a household  nor  a  surviving
spouse nor an individual whose federal exemption amount is zero shall be
seven  thousand  five  hundred  dollars;  for taxable years beginning in
nineteen hundred ninety-six, such  standard  deduction  shall  be  seven
thousand  four  hundred dollars; for taxable years beginning in nineteen
hundred ninety-five, such standard deduction shall be six  thousand  six
hundred  dollars; and for taxable years beginning after nineteen hundred
eighty-nine and  before  nineteen  hundred  ninety-five,  such  standard
deduction  shall  be  six  thousand dollars. FOR TAXABLE YEARS BEGINNING
AFTER TWO THOUSAND SIXTEEN, THE NEW YORK STANDARD DEDUCTION OF  A  RESI-
DENT  INDIVIDUAL WHO IS BETWEEN THE AGES OF EIGHTEEN AND TWENTY-FOUR AND
WHO IS NOT MARRIED NOR THE HEAD OF A HOUSEHOLD NOR  A  SURVIVING  SPOUSE
NOR  AN  INDIVIDUAL  WHOSE FEDERAL EXEMPTION AMOUNT IS ZERO SHALL BE TEN
THOUSAND DOLLARS.
  S 3. Section 615 of the tax law is amended by adding a new  subsection
(h) to read as follows:
  (H)  FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOU-
SAND SEVENTEEN, IN THE CASE OF A RESIDENT  INDIVIDUAL,  THERE  SHALL  BE
ALLOWED  AS  A  DEDUCTION  FOR  THE  TAXABLE YEAR AN AMOUNT EQUAL TO THE
INTEREST PAID BY THE TAXPAYER DURING THE TAXABLE YEAR ON  ANY  QUALIFIED
EDUCATION  LOAN  TO  THE  EXTENT  AND  AS PROVIDED IN SECTION 221 OF THE
INTERNAL REVENUE CODE.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2019  and  shall  expire  and  be
deemed repealed December 31, 2024.

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